The restaurants in question are Taco King and Gallo's, which have been accused of violating wage laws a number of times in the past. The chain will owe workers approximately $800,000 plus other damages related to claims that piled up over the course of a two year period. After an investigation by the state's Department of Labor and Workforce Development, they found violations of the Alaska Wage and Hour Act and numerous problems with the company's payroll records.

The owner's agreement will distribute the wages to approximately 150 employees, who were all underpaid to varying degrees. This represents one of the largest unpaid wage claims in the history of the state of Alaska. Most of the unpaid wages stem from several problems with the company's way of keeping records of daily overtime. The issues were extensive enough that managers, delivery drivers, cooks, and hosts at the chain were all affected. Without accurate records, the employees were not paid appropriately and the company had no way to verify what wages were actually owed to each individual employee.

The Labor Department also found that the parent company has had a history of similar issues over the years. Prior investigations regarding improper wages in the winter of 2007 and the summer of 2015 led to approximately $50,000 in damages and missed payments being sent to victims. The most recent claim originated near the end of 2015, and the state's labor department decided to do a full scale audit of the company for several years of records based on the long history of problems and complaints.

Although audits are generally reserved as a last resort measure, the labor department had previously waived some of the company's prior damage payments in hopes that their accounting and payroll practices would improve. The company had also received formal written notices from the government on several occasions.

Wage regulations prevent employers from withholding pay

All employers in the United States are required to follow certain laws regarding pay and wages. All employees must be paid for any hours worked, and there may be additional requirements for overtime and other forms of compensation. Workplaces that violate these labor laws can face lawsuits and sanctions from the government.